How to calculate Funding rate?


The futures contracts of AAX are perpetual contracts meaning they do not have an expiry date. Because of this feature, AAX futures contracts auto-roll every 8-hours with a funding rate mechanism paid between Long and Short positions to anchor the price to the spot rate in order for traders to maintain their positions.

Every 8 hours, all traders who have open positions in the perpetual swap pair, will either receiving or paying a funding fee. Whether one has to pay or receive a funding fee, depends whether they are long or short. When the Funding is positive, longs pay shorts. When it is negative, shorts pay longs.

Attention:All types of contracts are settled in BTC.

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